5 Big Myths About Secured Credit Cards

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5 Big Myths About Secured Credit Cards Secured credit cards are an often over-looked option for people who have struggled with credit issues. A secured card is a card in which you make a cash deposit into a bank account which serves as the credit line for that credit card. You can then use this card anywhere that accepts credit cards while using your own money as collateral. There are many good sources of information on financial websites that you should review before deciding if a secure credit card is a good option for you. 10 Questions To Ask About Secured Credit Cards gives a list of things to consider before applying for a secured credit card. There are, however, several misconceptions about these types of credit cards that are important to know before you decide to apply for a secured credit card. Myth #1: Anyone can get a secured credit card. Even though you are using your own money as collateral, you can still be declined for a secure credit card. For example, the lender that provides the secure card can still review your credit history. The application documents will indicate if the lenders can do this as part of the application process. If you are declined, the law requires that you be given a reason why your application wasn’t approved. It will also tell you whether a credit report was used and how to get a copy of it. Ask Mr. Credit Card explains more on how you can get denied in the article Is Everyone Eligible? Myth #2: All secured credit cards are created equal. As in most things in life, there are good secured credit cards and there are bad secured credit cards. Most secured cards do have fees, but these fees should be reasonable. You can find a list of good secured cards at The 5 Best Secured Credit Cards. In addition, there are other problems that you may experience if you go with a secured card from a less than reputable
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